Trireme, that all depends on the recovered grades which are still unknown but A1 estimates somewhere around 5-11g/t from the 1650 level stockworks. There is visible gold in some of the ore. At the contracted processing rate of 50k tonnes/pa,
5g/t = ~8000oz = ~$1.25m net to ORS (10% @ $1600oz) 10g/t = ~16000oz = ~$2.5m net to ORS (10% @ $1600oz) 20g/t = ~32000oz = ~$5m net to ORS (10% @ $1600oz)
Plus ORS should see a reduction in fixed costs as A1 will pick up the tab for plant operations/maintenance during the toll treatment period.
There is still 100k tonnes/pa mill capacity for the union hill decline (100% ownership) which is due start producing ore later this year. Estimated grades are around 12g/t.
Earnings could exceed current MC by the end of the year all going well.
ORS Price at posting:
11.6¢ Sentiment: Buy Disclosure: Held
